S-1081_pj.53_2002 - Value Added Tax On Sales Of Voucher Hotel By Travel Agent.docx

LETTER DIRECTOR GENERAL OF TAXES NUMBER S - 1081 / PJ.53 / 2002 ABOUT VAT TO SALES VOUCHER HOTEL BY BUREAU TRAVEL DIRECTOR GENERAL OF TAXES, In connection with your letter Number XXX dated July 19, 2002, the terms of VAT Rate on Sales of Voucher Hotel By Travel Agent for Hotel Vouchers located in Indonesia and for the Hotel Voucher outside Indonesia, hereby notified the following matters: 1.

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In the letter among them it is stated that: a. Travel agent companies sell hotel vouchers located in Indonesia as well as outside Indonesia. The hotel voucher is a booking document on a particular hotel and on a certain date issued by the travel agent by the request of the buyer, and used by the voucher holder (buyer) as a sign of admission on the use of the hotel. In this case the travel agency cooperates with hotels and hotels deliver contract rate (the price to be paid by the travel agent to the hotel). b. You asked:  Which regulation apply to the selling activities of the hotel voucher: Article 5 SubArticle k of Government Regulation Number 144/2000, Ministerial Finance Decree No. 567 / KMK.04 / 2000, or Circular Letter of the Director General of Taxes Number SE-01 / PJ.32 / 2000;  On sale of domestic hotel voucher subject to VAT or not? If charged, how much is the charge?  On sale of hotel vouchers located outside of Indonesia subject to VAT or no? If subject to is the tariff equal to the rate on the sale of the voucher domestic hotels? Article 4 Sub-Article c of Regulation No. 8/1983 regarding to Value Added Tax Goods and Services and Sales Tax on Luxury Goods as already amended several times the last by Regulation No. 18/2000, stipulates that Value Added Tax is charged on the Handing of Taxable Services within the Customs Area conducted by the Entrepreneur. Explanation of the Article states that the handing of services owed tax shall be complied with conditions as follows:  Services delivered are Taxable Services;  Handing activity is done within the Customs Area; and  Handing activity is done in the business or work activities. Decree of the Finance Minister No. 567 / KMK.4 / 2000 on Other Values as the Basis of Imposition Tax as amended by Decree of the Finance Minister No. 251 / KMK.03 / 2002, among them organize that: a. Article 1 states that in this Finance Minister’s Decree what is meant by Another Value is an amount stipulated as the Tax Imposition Basis. b. Article 2 letter h stipulates that the Other Values referred to in Article 1 for the delivery of travel agent services or tourist bureau services is 10% (ten percent) of the amount of the bill or the amount that should be charged. Point 8 Circular Letter of the Director General of Taxation No. SE-01 / PJ.32 / 2000 dated May 4, 2000 VAT Confirmation of Agency Services (Ticket Sales), states that affirmation in the Letter

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This Circular applies to the delivery of agency services for the sale of land transport tickets, air freight and sea transport including river and lake transportation. Subject to the regulation of items 2 to 4, and take note of the contents of your letter on point 1 above, it is hereby affirmed that: a. Conditions apply to the activities of selling hotel vouchers by travel agent is the Decree of the Finance Minister No. 567 / KMK.04 / 2000 on Other Values As the Tax Basis has amended by the Decree of the Finance Minister No. 251 / KMK.03 / 2002. Article 5 letter k of Government Regulation No. 144/2000 is not appropriately implemented because the selling activity of the hotel voucher is not a service in the field of hospitality as referred to in the said Government Regulation; while SE-01 / PJ.32 / 2000 is not appropriately applied to the activity you asked because the Circular Letter is only valid for ticket sales agency activities land transportation, air transport and sea transport including river and lake transportation. b. For the selling of hotel vouchers located in Indonesia is subject to VAT with Tax Basis in the form of Other Values as referred to the regulation in item 3 above, so that the VAT Payable is 1% (one percent) of the amount requested or should be requested by PT XYZ to the buyer of the voucher. c. For the selling of hotel vouchers abroad is subject to VAT because it is the delivery of Taxable Services within the Customs Area in accordance with the regulation in point 2 above. The Value Added Tax payable is 1% of the charged amount or should be billed by PT XYZ to the buyer of the voucher.

It is thus conveyed to be understood.